MEDCs add import taxes/tariffs to LEDC products, this makes them more expensive. 10p12p.
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Transcript of MEDCs add import taxes/tariffs to LEDC products, this makes them more expensive. 10p12p.
MEDCs add import taxes/tariffs to LEDC products, this makes them more expensive.
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MEDCs put quotas on the import of LEDC products- they are only allowed to export a set amount to a country.
MEDCs can also give subsidies to their producers.
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LEDCs could protect their own producers with taxes, tariffs and quotas, but they are likely to lose loans from MEDCs.
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MEDCs have joined trading blocks, such as the European Union, which protect their producers from outside imports, but allow free trade
between each other.
LEDCs have been encouraged to produce primary products, as such overproduction leads to falling prices...
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Primary agricultural products are effected by a number of natural factors which are out of the control of producers.
LEDCs tend to export primary goods and import secondary products.This creates a deficit which they have to fill with loans.
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I t would be in the interests of LEDCs to produce secondary products, but they struggle to do this because...
Capital to invest
Skilled and educated workforce
Trade rules and accessing MEDC
marketsPolitical stability
Infrastructure
